Bill Gates on Microsoft's Apple Attack Plan

Bill Gates, Microsoft chairman; and Warren Buffett, Berkshire Hathaway chairman & CEO, discuss the impact of interest rates on investment strategies, and global currencies. And, both men weigh in on why high frequency trading is really just a form of legalized "front running." Also, Gates explains why the software business is an "amazing" business to be in.

Microsoft Chairman Bill Gates told CNBC on Monday that the software giant is trying to gain market share in the Apple-dominated tablet market.

Personal computers are still a big business, he said in a "Squawk Box" interview, appearing from Omaha, Neb., with fellow billionaire Warren Buffett. Gates, a board member of Buffett's Berkshire Hathaway, added that it's going to be harder to tell the difference between the tablets and personal computers.

"With Windows 8, Microsoft is trying to gain market share in what has been dominated by the iPad-type device. But a lot those users are frustrated. They can't type. They can't create documents," he added. "So we're providing them something with the benefits they've seen that has made that a big category but without giving up what they expect in a PC."

"If you have Surface or Surface Pro, you have the portability of the tablet but the richness of terms of the keyboard, Microsoft Office of the PC," said Gates, referring to Microsoft's tablet.

As for the soaring stock market, Gates said interest rates are a significant issue for long term investors to consider.